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Interim day rates

Commentary by Paul Phillips, Director - Infrastructure, Business & Support Services

day rates

In a year of seismic political changes we are taking a moment to review how they have affected the Interim market and where we all feel the change most keenly: in our day rates!

The results of our recent poll reveal that only 20% of our interim community believe day rates have gone up in the past 12 months.

Those that felt day rates had gone down (44%) tend to work in the Public Sector, and primarily in the NHS. This reflects our experience: where Commercial and Financial sector day rates have largely held up, the structural changes across Public Sector interim usage have resulted in a market-wide shift in day rates.

"Whilst my rates have stayed more or less the same, i have seen an increase in places trying to appoint at significantly lower rates than what is reasonable for someone with significant interim experience meaning that their ability to deliver is going to be limited by their ability to recruit someone with the levels of experience and deliverables they expect, but I just walk away from these and find alternative roles." Survey respondent

The Commercial and Financial sectors have not been untouched, however. Within the Infrastructure, Business & Support Services sector we have seen our clients who outsource from Central Government tighten their belts significantly in the wake of austerity measures and in preparation for the post-Brexit world.

We are yet to experience the direct Brexit impact in my sector but the shockwaves could be paradigm-shifting because of the high number of low-paid foreign labour, particularly in the Cleaning, Catering and Construction sectors.

This dynamic of uncertainty and subsequent pressure on spend makes it all the more imperative that the interim providers and interims work hard to demonstrate value for money and deliver ROI.

"I've noticed the pressure on rates but I have not compromised - there remain CEOs willing to pay VSM rates for quality." Survey respondent

Perhaps a grater volume of payment by results or completion bonus models could be the way forward?

As always, thank you for your responses. 

 

Paul Phillips is Director of Infrastructure, Business & Support Services

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